Digitisation Drives ATM Decline, Branch Growth Surges: FY25 RBI Report

The FY25 RBI report highlights a decline in ATMs due to digitisation, while bank branches increased by over 2%. Private sector banks' ATM networks fell further compared to public sector banks. Despite digital alternatives, banks are opening more branches, particularly in rural and semi-urban areas. Basic savings accounts saw significant growth.

The latest RBI report for FY25 reveals a moderate decline in the number of automated teller machines (ATMs) as digital transactions continue to rise. In contrast, the number of bank branches grew, showcasing a proactive expansion by public sector banks.

Private sector banks witnessed a sharper decline in ATM numbers, falling to 77,117 from 79,884, while public sector banks followed suit albeit at a smaller margin. This drop is attributed to the strategic closure of offsite ATMs.

Interestingly, despite the digital shift, banks are aggressively opening new branches, especially public sector banks with a focus on rural and semi-urban regions. Conversely, the percentage of private bank openings diminished. Furthermore, basic savings accounts surged, reflecting a 9.5% increase in aggregate balance.